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Offer Letter
I need an offer letter for a new hire in the marketing department, outlining a starting salary, standard benefits package, and a start date in two weeks. The letter should also include a brief overview of the company's mission and values.
What is an Offer Letter?
An Offer Letter is a formal written document from an employer that outlines the key terms of a job offer to a potential employee in Singapore. It typically includes essential details like salary, job title, start date, work location, and basic employment conditions.
Under Singapore's Employment Act, this letter forms a crucial part of the employment contract once signed by both parties. While not all terms need to be included in the initial offer, employers must provide complete written employment terms within 14 days of starting work. Many companies use the offer letter as the foundation for the final employment contract.
When should you use an Offer Letter?
Use an Offer Letter when you've selected a candidate and need to formalize your employment terms before they start work. In Singapore's competitive job market, sending this document quickly helps secure top talent while clearly documenting the employment relationship from the start.
The timing matters - issue the Offer Letter right after making a verbal offer and completing negotiations. This gives candidates the security they need to resign from their current jobs and meets Singapore's requirement to provide key employment terms in writing. Many employers coordinate this with background checks and reference verifications to streamline the hiring process.
What are the different types of Offer Letter?
- Job Offer Letter: Standard employment offer with basic terms and conditions, commonly used for regular full-time positions
- Job Offer Contract: More detailed version with comprehensive terms, typically used for senior roles or specialized positions
- Counter Offer Letter: Used to retain valuable employees by presenting revised employment terms
- Job Acceptance Letter: Candidate's formal response accepting the offer terms
- Offer Letter For House: Adapted format for real estate transactions, outlining property purchase terms
Who should typically use an Offer Letter?
- HR Managers: Draft and customize Offer Letters, ensure compliance with employment laws, and manage the overall hiring process
- Company Directors: Review and approve offer terms, especially for senior positions or when terms deviate from standard packages
- Legal Teams: Verify legal compliance, update templates, and review non-standard terms or special clauses
- Hiring Managers: Initiate the offer process, determine role-specific terms, and often sign letters alongside HR
- Job Candidates: Review, negotiate, and formally accept the employment terms by signing the letter
- MOM Officials: May review offer letters during employment disputes or work pass applications
How do you write an Offer Letter?
- Position Details: Confirm job title, department, reporting structure, and key responsibilities
- Compensation Package: Compile salary, bonuses, benefits, stock options, and any variable components
- Work Arrangements: Document work hours, location, remote work policies, and probation period
- Legal Requirements: Check MOM guidelines for mandatory terms, especially for different employment types
- Company Policies: Include references to relevant handbooks, codes of conduct, and confidentiality terms
- Approval Chain: Get sign-off from hiring manager, HR, and finance before sending to candidate
- Template Selection: Use our platform's smart templates to ensure all required elements are included correctly
What should be included in an Offer Letter?
- Job Specifics: Full job title, duties, reporting structure, and work location as per MOM requirements
- Compensation Terms: Base salary, allowances, bonus structure, and payment schedule
- Employment Period: Start date, probation duration, notice period for termination
- Working Hours: Standard hours, overtime policies, rest days as required by Employment Act
- Benefits Package: Leave entitlements, medical benefits, insurance coverage
- Confidentiality Clause: Protection of company information and trade secrets
- Governing Law: Statement that Singapore law applies to the employment relationship
- Acceptance Section: Clear signature blocks for both employer and employee
What's the difference between an Offer Letter and an Employment Letter?
An Offer Letter differs significantly from an Employment Letter in several key aspects under Singapore law. While both documents relate to employment relationships, their timing, purpose, and legal implications vary considerably.
- Timing and Purpose: Offer Letters come first, proposing specific employment terms to a candidate. Employment Letters confirm an existing employment relationship and are often used for verification purposes.
- Legal Status: Offer Letters create conditional obligations pending acceptance, while Employment Letters document current employment facts without creating new obligations.
- Content Scope: Offer Letters detail salary, benefits, and work conditions for negotiation. Employment Letters typically focus on confirming employment status, tenure, and position.
- Primary Use: Offer Letters initiate new employment relationships. Employment Letters serve as proof of employment for banks, landlords, or visa applications.
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